Problem $1$: Use the following information on a company$$s investments in debt securities to answer the questions below. The company$$s accounting year ends December $31.$

Investment Date of Acquisition Cost Fair Value

$12/31/16$ Date Sold Selling Price

Ajax Company $9/20/16$ $$38,000$ $$39,0002/10/17$ $$42,000$

Brill Company $10/2/1614,00013,9001/17/1713,000$

$1.$ If the above investments are categorized as available$-$for$-$sale securities$,$ what amount is reported for gain or loss on securities in $2016$ income?

$2.$ If the above investments are categorized as available$-$for$-$sale securities$,$ what amount is reported for gain or loss on securities in $2017$ income?

$3.$ If the above investments are categorized as trading securities$,$ what amount is reported for gain or loss on securities in $2016$ income?

$4.$ If the above investments are categorized as trading securities$,$ what amount is reported as gain or loss on securities in $2017$ income?